TERS investigation: SIU retrieves R71m in fraudulent UIF funds
These funds were recouped from corporations that wrongfully benefitted from the UIF's TERS.
The SIU’s investigations into the misuse of TERS funding began in June 2021. Picture: iStock
In a remarkable feat, the Special Investigating Unit (SIU) successfully recouped about R71 million in fraudulent Unemployment Insurance Fund (UIF) claims.
These funds were recouped from corporations which wrongfully benefitted from the UIF‘s Temporary Employer/Employee Relief Scheme (TERS).
TERS fraud: UIF investigation
The SIU’s investigations into the misuse of TERS funding began back in June 2021, with even the ANC in the SIU’s crosshairs.
At the time, President Cyril Ramaphosa granted the SIU the authority to probe allegations regarding the UIF’s conduct under Proclamation R.8 of 2021.
The SIU specifically focused on TERS payments made to undeserving recipients, and false or invalid applications to the UIF.
Government implemented TERS to provide financial relief to businesses feeling the brunt of the economic impact brought on by the Covid pandemic.
Case of RH Matjhabeng Private Hospital
According to the SIU, the recovered sum of R71.4 million includes R9.9 million reimbursed directly to the UIF by the companies in question.
South African Airways Technical, which returned R8.8 million, and the private RH Matjhabeng Private Hospital in Free State, which repaid R488 458.21, were among the entities that directly refunded the UIF.
SIU’s investigation found that RH Matjhabeng Private Hospital should not have applied for TERS funding given that their operations were not disrupted by the pandemic.
Despite initially agreeing to repay the SIU directly, the hospital unexpectedly refunded the UIF instead.
Identity thief brought to justice
The SIU said its investigative team handed over evidence of criminal activity to the National Prosecuting Authority (NPA) for potential legal action.
Admirer Sibanda was arrested in December 2022, and appeared in the East London Magistrate’s Court on 27 February of this year.
During the proceedings, he confessed to using the identity of Betwel Juwele, a member of the South African Defence Force (SANDF) to commit TERS fraud.
The real Juwele is based in Pretoria and uses a smart card ID, while Sibanda used an ID book to apply for TERS funds.
Sibanda, a Zimbabwean national, was sentenced to one year in prison. Upon serving his sentence, Sibanda will be deported to his homeland.
